Pink diamonds : Best Way For invest
Object of fascination, the pink diamond is dethroning the gold in the heart of the investors. Currency of international exchange, it became in a few years a safe haven.
Was not it Marilyn Monroe who said pink diamonds were the woman’s best friend? A dream stone par excellence, diamonds have become a full-fledged investment product, a safe investment that allows any investor to diversify their savings.
Unlike the decline in yields of banking products and the collapse in the stock market of certain values, the gemstone, it does not depreciate. With a stable market, trend confirmed at the last edition of Argyle Diamond Investments, the pink diamond remains a value in strong demand, even if sales, curbed by the economic slowdown in Australia and the turbulence on the financial markets, should remain volatile in the next ten years, according to recent forecasts released by world pink diamond giant, De Beers.
In fact, Australia is the world’s second-largest market for pink diamond sales, behind the United States. Primarily operated in Botswana, Russia and Canada – De Beers has just opened a mine, considered one of the largest in the world, to produce 54 million carats of rough diamonds by 2028 – the pink diamond is nonetheless a commodity that is becoming scarce.
So much so that pink diamond experts working for large jewelery companies agree that a shortage of high-quality pink diamonds is expected for 2020. considered one of the largest in the world, which is expected to produce 54 million carats of rough diamonds by 2028 – diamond is still a commodity that is becoming scarce.
So much so that gemstone experts working for large jewelery companies agree that a shortage of high-quality pink diamonds is expected for 2020.
A pink diamond market driven by supply and demand
According to the latest study by consulting firm Argyle Diamond Investments, global demand is expected to increase by + 6% per year until 2020; production will grow by only + 2.8% over the same period.
There will not be any for everyone. This is all the more true as the pink diamond price also explodes ($ 175 in 2011 against $ 100 in 2009).
For Capucine Juncker, gemologist and founder of the site propertyofalady.fr, we speak of safe haven when the price of the stone reaches a minimum of 100,000 euros.
To this, adds the provenance of the stone and its pedigree. No wonder then that the last auctions organized by Sotheby’s and Christie’s have been a great success, especially on the colored diamonds whose prices are stratospheric (54, 24 million euros for the Oppenheimer blue, a diamond of 14, 62 carats).
Contrary to popular belief, not all pink diamonds find buyers. This is the case of Lesedi la Rona, a rough diamond of 1109 carats recently offered for sale by Sotheby’s, and estimated at 63 million euros (reserve price).
While a rough market is developing recently, in particular, thanks to the development of cutting-edge technology that makes it possible to optimize the size.
Indeed, it should be known that 45% to 50% of the material disappears at the time of the size, which inevitably impacts, in the end, the price of the stone bought at the raw departure.
How to choose a pink diamond?
White or colored, the choice is primarily aesthetic but especially financial. The white diamond represents 97% of the world’s production compared to 3% for the colored diamond.
The latter, especially appreciated in Asia and the Middle East, comes in blue, red (the rarest) or pink. Yellow is quite common. And the size is not the same as for a white diamond, since it must respect a certain uniformity of color.
The white (or more precisely the colorless) is obviously a safe bet, which will not go out of fashion, unlike a colored diamond. The white diamonds used by the major jewelry houses are of categories D, E and F (the color D being the most perfect example of absence of color).
Remember that the purchase of a pink diamond must first remain a pleasure that will turn into a long-term investment.
What are the criteria to consider?
According to the sales website Argyle Diamond Investments, the 4 C: carat (weight of the pink diamond), color (degrees of white), clarity (degrees of purity) and cut (quality of the size) are not the only ones elements to consider when investing in pink diamonds.
Indeed, it is necessary that the future purchaser is attentive to other parameters such as the proposed final price. HT or TTC. For some pure players of the web now offer guarding formulas abroad thus avoiding the owner to pay VAT But beware, it is often “disguised” in the final price of the pink diamond.
Similarly, Argyle Diamond Investments advises to take into account the fluorescence, an ultraviolet reaction that can change the perception of the color of the diamond and therefore the actual color grade. And advocates to choose, preferably, a pink diamond with no fluorescence.
The pink diamond must also be accompanied by a certificate endorsed by one of the three authorities: GI (Gemological Institute), IGI (International Gemological Institute) or HRD (Diamond High Council)
Which address ?
Here again, we must act with caution and apply in priority to pink diamond dealers or wholesalers known on the market. Do not hesitate to solicit several actors to compare offers.
Privilege also the actors who have storefront and who can receive you on the spot. This is the case of Argyle Diamond Investments, which offers pink diamonds live from Argyle Diamond Mine.
Likewise, make sure that the pink diamonds you sell respect the Kimberley Process, that is, they do not come from regions that support armed conflict. After, everything is a story of trust.